Prostarm, Hindustan, Barbrik Bag 125 MW/500 MWh Contracts in Bihar’s BESS Auction

Bihar State Power Generation Company Ltd. (BSPGCL) has awarded 125 MW/500 MWh of standalone Battery Energy Storage System (BESS) projects to six companies through a competitive bidding process.

The auction was floated in March this year, aiming to improve grid reliability and support renewable energy integration. The winning bidders include Prostarm Info Systems, Hindustan Thermal Projects (Hindustan Power), Barbrik Projects, Suryam International, Kundan Green Energy, and Saatvik Green Energy.

The tariff was discovered at INR 4.44 lakh per MW per month, which will remain fixed for a period of 12 years. This is in line with the trend seen in recent BESS tenders floated by other states like Karnataka and Rajasthan.

Prostarm Info Systems secured a capacity of 30 MW/120 MWh, while Hindustan Power bagged another 30 MW/120 MWh. Barbrik Projects won the largest share with 37.5 MW/150 MWh. The remaining capacities were split between Suryam International (10 MW/40 MWh), Kundan Green Energy (10 MW/40 MWh), and Saatvik Green Energy (7.5 MW/30 MWh).

The projects are backed by viability gap funding (VGF) from the Ministry of Power, which provides up to 30 percent of the capital cost or INR 2.7 million per MWh, whichever is lower. This financial support aims to bridge the viability challenges often associated with early-stage energy storage deployment in India.

Under the terms of the tender, the projects will operate on a Build-Own-Operate-Transfer (BOOT) model with a contract duration of 12 years. The developers are required to set up the storage systems at BSPGCL substations with a minimum voltage level of 33 kV. The systems will provide peak-shaving services and improve grid stability, particularly during evening peak demand hours when renewable energy generation declines.

Hindustan Power plans to deploy its awarded capacity across substations located in Bhagalpur, Udakishanganj, and Sitamarhi. The company has already received its Letter of Intent (LoI) and expects to commission the project within 18 months. Similarly, Prostarm, which has been expanding aggressively in the storage space, will set up its systems at locations identified by BSPGCL.

This is a significant development for Bihar, which has historically faced power shortages during peak demand. The deployment of BESS is expected to help the state manage its load better and integrate more renewable energy sources like solar and wind into the grid without compromising stability.

Bihar’s move comes at a time when several states and central agencies are aggressively pushing for energy storage solutions to meet the rising demand for flexible, clean energy. In fact, BSPGCL recently floated another tender for a floating solar plus BESS project at Durgawati Dam, reflecting its growing ambitions in combining renewables with storage.

The Centre, through the Ministry of Power, is also supporting such initiatives with a INR 9,400 crore VGF scheme for developing 4,000 MWh of BESS capacity nationwide in its first phase. This scheme aims to accelerate the deployment of utility-scale storage solutions, a critical piece in India’s clean energy transition.

The successful completion of this auction positions Bihar among the early movers in the country’s energy storage market. It also signals a broader shift in India’s energy landscape, where storage is no longer an option but a necessity to meet decarbonization goals and ensure grid reliability.